10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q/A

(Mark One)

þ           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2011

¨           TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 0-8157

THE RESERVE PETROLEUM COMPANY

(Exact Name of Registrant as Specified in Its Charter)

DELAWARE	73-0237060
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
6801 BROADWAY EXT., SUITE 300 OKLAHOMA CITY, OKLAHOMA  73116-9037 (405) 848-7551
(Address and telephone number, including area code, of registrant’s principal executive offices)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.Yes  þNo  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  þNo o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer o Accelerated filer o Non-accelerated filer o Smaller reporting company þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yeso No  þ

As of August 8, 2011, 161,060.64 shares of the Registrant’s $.50 par value common stock were outstanding.

EXPLANATORY NOTE

 The sole purpose of this Amendment No. 1 to The Reserve Petroleum Company’s Quarterly Report on Form 10-Q (the “Form 10-Q”) for the period ended June 30, 2011, as filed with the Securities and Exchange Commission on August 15, 2011, is to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Exhibit 101 provides the financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language).

 No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

ITEM 6.                      EXHIBITS

   The following documents are exhibits to this Form 10-Q. Each document marked by an asterisk is filed electronically herewith. Documents are also available on www.reserve-petro.com

Exhibit Number	Description
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Calculation Linkbase Document
101.LAB*	XBRL Taxonomy Label Linkbase Document
101.PRE*	XBRL Taxonomy Presentation Linkbase Document
	________________________________ * Filed electronically herewith. Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

SIGNATURES

   Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereto duly authorized.

		THE RESERVE PETROLEUM COMPANY
		(Registrant)
Date:	September 12, 2011	/s/Cameron R. McLain
		Cameron R. McLain
		Principal Executive Officer
Date:	September 12, 2011	/s/James L. Tyler
		James L. Tyler
		Principal Financial and Accounting Officer

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Statements of Income (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Operating Revenues:
Oil and Gas Sales	$ 3,292,789	$ 3,306,547	$ 5,847,316	$ 6,179,258
Lease Bonuses and Other	194,341	1,049,294	259,038	1,150,984
[OilAndGasRevenue]	3,487,130	4,355,841	6,106,354	7,330,242
Operating Costs and Expenses:
Production	514,063	540,310	970,200	1,020,129
Exploration	4,093	67,083	38,716	272,871
Depreciation, Depletion, Amortization and Valuation Provisions	592,464	582,013	1,044,901	949,973
General, Administrative and Other	374,563	338,062	770,839	728,412
[OperatingExpenses]	1,485,183	1,527,468	2,824,656	2,971,385
Income from Operations	2,001,947	2,828,373	3,281,698	4,358,857
Other Income (Loss), Net	261,629	(11,948)	300,079	23,473
Income Before Provision for Income Taxes	2,263,576	2,816,425	3,581,777	4,382,330
Provision for Income Taxes:
Current	389,846	718,235	603,310	801,430
Deferred	236,146	117,311	348,479	427,495
Total Provision for Income Taxes	625,992	835,546	951,789	1,228,925
Net Income	$ 1,637,584	$ 1,980,879	$ 2,629,988	$ 3,153,405
Per Share Data:
Net Income, Basic and Diluted	$ 10.16	$ 12.26	$ 16.32	$ 19.51
Cash Dividends Declared and / or Paid	10.00	10.00	10.00	10.00
Weighted Average Shares Outstanding, Basic and Diluted	161,154	161,610	161,185	161,641

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Condensed Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Condensed Statements Of Cash Flows
Net Cash Provided by Operating Activities	$ 4,495,830	$ 4,980,261
Cash Flows Applied to Investing Activities:
Purchases of Available-for-Sale Securities	(12,893,876)	(14,055,338)
Maturity of Available-for-Sale Securities	13,138,811	14,050,785
Proceeds from Disposal of Property	303,648	15,815
Purchase of Property, Plant and Equipment	(2,820,443)	(1,755,686)
Cash Distribution from Investment	3,000	2,350
Net Cash Applied to Investing Activities	(2,268,860)	(1,742,074)
Cash Flows Applied to Financing Activities:
Dividends Paid to Stockholders	(1,572,572)	(1,547,117)
Purchase of Treasury Stock	(24,640)	(32,000)
Total Cash Applied to Financing Activities	(1,597,212)	(1,579,117)
Net Change in Cash and Cash Equivalents	629,758	1,659,070
Cash and Cash Equivalents, Beginning of Period	2,940,967	1,051,141
Cash and Cash Equivalents, End of Period	$ 3,570,725	$ 2,710,211

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Document and Entity Information	6 Months Ended
	Jun. 30, 2011	Aug. 08, 2011
Document And Entity Information
Entity Registrant Name	RESERVE PETROLEUM CO
Entity Central Index Key	0000083350
Document Type	10-Q
Document Period End Date	Jun. 30, 2011
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		161,060.64
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2011

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PROVISION FOR INCOME TAXES

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

PROVISION FOR INCOME TAXES

Note 4 – PROVISION FOR INCOME TAXES

In 2011 and 2010, the effective tax rate was less than the statutory rate, primarily as the result of allowable depletion for tax purposes in excess of the cost basis in oil and gas properties and the corporate graduated tax rate structure.

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OTHER INCOME (LOSS), NET

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

OTHER INCOME (LOSS), NET

Note 2 – OTHER INCOME (LOSS), NET

The following is an analysis of the components of Other Income (Loss), Net for the three months and six months ended June 30, 2011 and 2010:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Realized and Unrealized Gain (Loss) on Trading Securities	($	24,305	)	($	37,806	)	$	2,023		($	31,056	)
Gain on Asset Sales		267,909			4,063			269,232			15,233
Interest Income		6,047			5,191			12,335			13,322
Equity Earnings in Investees		9,599			13,144			24,471			26,024
Other Income		8,996			10,468			9,044			17,876
Interest and Other Expenses		(6,617	)		(7,008	)		(17,026	)		(17,926	)
Other Income (Loss), Net	$	261,629		($	11,948	)	$	300,079		$	23,473

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ASSET RETIREMENT OBLIGATION

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

ASSET RETIREMENT OBLIGATION

Note 5 – ASSET RETIREMENT OBLIGATION

The Company records the fair value of its estimated liability to retire its oil and natural gas producing properties in the period in which it is incurred (typically the date of first sale). The estimated liability is calculated by obtaining current estimated plugging costs from the well operators and inflating it over the life of the property. Current year inflation rate used is 4.08%. When the liability is first recorded, a corresponding increase in the carrying amount of the related long-lived asset is also recorded. Subsequently, the asset is amortized to expense over the life of the property and the liability is increased annually for the change in its present value which is currently 3.25%.

A reconciliation of the Company’s asset retirement obligation liability is as follows:

Balance at December 31, 2010	$	848,631
Liabilities incurred for new wells		32,452
Accretion expense		13,005
Balance at June 30, 2011	$	894,088

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

FAIR VALUE MEASUREMENTS

Note 6 – FAIR VALUE MEASUREMENTS

Inputs used to measure fair value are organized into a fair value hierarchy based on how observable the inputs are. Level 1 inputs consist of quoted prices in active markets for identical assets. Level 2 inputs are inputs, other than quoted prices, for similar assets that are observable. Level 3 inputs are unobservable inputs.

Recurring Fair Value Measurements

Certain of the Company’s assets are reported at fair value in the accompanying balance sheets on a recurring basis. The Company determined the fair value of the available-for-sale securities using quoted market prices for securities with similar maturity dates and interest rates. At June 30, 2011 and December 31, 2010, the Company’s assets reported at fair value on a recurring basis are summarized as follows:

	June 30, 2011
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Financial Assets:
Available-for-Sale Securities	$	—	$	12,893,876	$	—
Trading Securities	$	416,584	$	—	$	—

	December 31, 2010
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Financial Assets:
Available-for-Sale Securities	$	—	$	13,138,811	$	—
Trading Securities	$	414,124	$	—	$	—

Non-Recurring Fair Value Measurements

The Company’s asset retirement obligation incurred annually represents a non-recurring fair value liability. The fair value of this non-financial liability incurred in the six months ended June 30, was $32,452 in 2011 and $47,365 in 2010 and was calculated using Level 3 inputs. See Note 5 above for more information about this liability and the inputs used for calculating fair value.

Fair Value of Financial Instruments

The Company’s financial instruments consist primarily of cash and cash equivalents, trade receivables, marketable securities, trade payables and dividends payable. At June 30, 2011 and December 31, 2010, the historical cost of cash and cash equivalents, trade receivables, trade payables and dividends payable are considered to be representative of their respective fair values due to the short-term maturities of these items.

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NEW ACCOUNTING PRONOUNCEMENTS

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

NEW ACCOUNTING PRONOUNCEMENTS

Note 7 – NEW ACCOUNTING PRONOUNCEMENTS

There were no accounting pronouncements issued or that became effective since December 31, 2010 that were directly applicable to the Company.

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BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

BASIS OF PRESENTATION

Note 1 – BASIS OF PRESENTATION

The accompanying balance sheet as of December 31, 2010, which has been derived from audited financial statements, the unaudited interim financial statements and these notes, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain disclosures normally included in financial statements prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) have been omitted. The accompanying financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010.

In the opinion of Management, the accompanying financial statements reflect all adjustments (consisting only of normal recurring accruals), which are necessary for a fair statement of the results of the interim periods presented. The results of operations for the current interim periods are not necessarily indicative of the operating results for the full year.

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INVESTMENTS AND RELATED COMMITMENTS AND CONTINGENT LIABILITIES, INCLUDING GUARANTEES

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

INVESTMENTS AND RELATED COMMITMENTS AND CONTINGENT LIABILITIES, INCLUDING GUARANTEES

Note 3 – INVESTMENTS AND RELATED COMMITMENTS AND CONTINGENT LIABILITIES, INCLUDING GUARANTEES

Equity Investment consists of a 33% ownership interest in Broadway Sixty-Eight, Ltd. (the “Partnership”), an Oklahoma limited partnership, which owns and operates an office building in Oklahoma City, Oklahoma. Although the Company invested as a limited partner, it agreed, jointly and severally, with all other limited partners to reimburse the general partner for any losses suffered from operating the Partnership. The indemnity agreement provides no limitation to the maximum potential future payments. To date, no monies have been paid with respect to this agreement.

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Balance Sheets (Unaudited) (USD $)	Jun. 30, 2011	Dec. 31, 2010
Current Assets:
Cash and Cash Equivalents	$ 3,570,725	$ 2,940,967
Available-for-Sale Securities	12,893,876	13,138,811
Trading Securities	416,584	414,124
Refundable Income Taxes		281,832
Receivables	1,587,455	1,800,659
[AssetsCurrent]	18,468,640	18,576,393
Investments:
Equity Investment	510,439	485,968
Other	151,839	151,839
[LongTermInvestments]	662,278	637,807
Oil and Gas Properties, at Cost, Based on the Successful Efforts Method of Accounting-
Unproved Properties	1,485,597	1,222,333
Proved Properties	28,651,594	26,323,648
[PropertyPlantAndEquipmentGross]	30,137,191	27,545,981
Less - Accumulated Depreciation, Depletion, Amortization and Valuation Allowance	19,341,677	18,709,551
[OilAndGasPropertySuccessfulEffortMethodNet]	10,795,514	8,836,430
Other Property and Equipment, at Cost	448,450	404,194
Less: Accumulated Depreciation and Amortization	241,549	225,708
OtherPropertyEquipmentNet	206,901	178,486
Total Property, Plant and Equipment	11,002,415	9,014,916
Other Assets	357,956	355,959
Total Assets	30,491,289	28,585,075
Current Liabilities:
Accounts Payable	286,866	177,628
Income Taxes Payable	278,264
Other Current Liabilities: Deferred Income Taxes and Other	334,568	256,354
[LiabilitiesCurrent]	899,698	433,982
Long-Term Liabilities:
Asset Retirement Obligation	894,088	848,631
Dividends Payable	1,491,775	1,453,070
Deferred Tax Liability	1,949,699	1,587,434
[LiabilitiesNoncurrent]	4,335,562	3,889,135
Total Liabilities	5,235,260	4,323,117
Stockholders Equity:
Common Stock	92,368	92,368
Additional Paid-in Capital	65,000	65,000
Retained Earnings	25,914,423	24,895,712
[StockholdersEquityBeforeTreasuryStock]	26,071,791	25,053,080
Less: Treasury Stock, at Cost	815,762	791,122
Total Stockholders Equity	25,256,029	24,261,958
Total Liabilities and Stockholders Equity	$ 30,491,289	$ 28,585,075